Coastal Insurance Policies on the Rise

COASTAL HOMEOWNERS INSURANCE INCREASES

Through the Williams Mullen Law Firm, Dare County, the Town of Nags Head, Starco Realty & Construction, Inc., and Joseph M. Geraghty have initiated four separate legal proceedings, including a lawsuit and an appeal to the North Carolina Court of Appeals, challenging Beach/FAIR Plan RATE INCREASES as approved by the NC Department of Insurance.

These increases were submitted by the North Carolina Insurance Underwriters Association (Beach Plan) and the North Carolina Joint Underwriters Association (FAIR Plan), but RECEIVED NO PUBLIC HEARING. Due to the significant impacts these increases will have on coastal citizens, Dare County and the plaintiffs are acting in multiple forums. In addition to the lawsuit and appeal, they have requested hearings before the representatives of the Beach/FAIR plans and the Insurance Commissioner. They contend that constitutional, statutory and administrative errors were committed in approving the increases.

In addition to the parties initiating the challenges, Dare County, the Town of Nags Head, Starco Realty & Construction, and Joseph “Duke” Geraghty, a number of other coastal counties and municipalities are being solicited to join the legal challenges due to the impacts the increases will have on homeowners, businesses, and local governments within our coastal communities. A number of those local governments, including the Town of Southern Shores, the Town of Duck, Currituck County and Washington County, have already agreed to join the challenges as named parties and to provide financial support.

Currently we are dealing with two separate homeowners insurance issues. To see the full scope of the issues at hand visit our Call to Action page. If you have any questions about this fact sheet please feel free to give BASE Governmental Affairs staff a call at (910) 799-2611.